The company achieved rapid growth in its full-year performance in 2022. According to the 2022 annual report disclosed by the company, the company achieved revenue of 1,447 million yuan in 2022, an increase of 54.68% over the previous year, and achieved net profit of 227 million yuan to the mother, a sharp increase of 89.32% over the previous year, and realized a deduction of 199 million yuan in non-net profit, an increase of 95.96% over the previous year. The corresponding company achieved revenue of 417 million yuan in the single quarter of 2022/Q4, an increase of 55.17% over the previous year, an increase of 6.80% over the previous quarter, and achieved net profit of 75.43 million yuan, a sharp increase of 147.23% over the previous year, an increase of 23.34% over the previous year, and realized a net profit of 69.37 million yuan after deducting non-net profit of 69.37 million yuan, a sharp increase of 222.57% over the previous year and an increase of 25.08% over the previous month. According to the company's first quarterly report of 2023, the company achieved revenue of 385 million yuan in the first quarter of 2023, an increase of 32.23% over the previous year, and achieved net profit of 73.46 million yuan, a sharp increase of 91.75% over the previous year, after deducting non-net profit of 65.31 million yuan, a sharp increase of 116.96% over the previous year. The company is deeply involved in the field of advanced magnetic metal materials. During the period, the company's amorphous alloys, nanocrystalline alloys and magnetic powder businesses went hand in hand, continuously creating and leading new application markets, expanding product market space, and consolidating its leading position in the industry.
Leading supplier of amorphous alloys, widely used in downstream fields. The company's amorphous alloy segment mainly includes amorphous alloy thin strips and amorphous iron cores of its products. The products are widely used in global power grids, new energy, data centers, rail transit and other fields. The company continues to explore the international market. During this period, the company's amorphous alloy products achieved rapid growth in overseas sales and scale. The design and production capacity of the company's amorphous alloy carrier tape reached 90,000 tons, making it the largest supplier of amorphous alloy carriers in the industry. It is expected that it will continue to benefit from strong downstream demand in the future.
The technical advantages are obvious. The company joined hands with many car companies to create nanocrystalline material solutions for new energy vehicles.
Nanocrystalline ultra-thin tape products are excellent materials for manufacturing magnetic devices such as inductors and transformers. Compared with traditional soft magnetic materials, the application of nanocrystalline materials can effectively reduce the size of magnetic devices and reduce the loss of magnetic devices. Their excellent comprehensive properties are expected to gradually replace traditional magnetic materials such as ferrite.
Since mass production in 2019, the company has focused on continuously expanding the market in emerging fields. In 2022, during the revenue period of the company's nanocrystalline business, the company cooperated with many well-known car companies to formulate nanocrystalline material plans for new energy vehicles, further broadening the application prospects of nanocrystalline materials, and the future market is broad.
Production capacity is gradually being released, and the competitiveness and market share of magnetic powder products are expected to increase further. The company's magnetic powder business mainly includes atomized powder and crushed powder products. During the period, the company further increased its investment in the magnetic powder business segment. Production capacity increased significantly compared to last year. At the same time, it completed qualified supplier certification for leading companies in the photovoltaic industry, laying the foundation for further expansion of marketing and sales channels in the future. With the gradual release of new production capacity for the company's magnetic powder products and the realization of marketing effects, product competitiveness and market share are expected to increase further in the future.
[Investment advice]
The company is deeply involved in advanced magnetic metal materials and has deep technical accumulation in the three new soft magnetic materials series of amorphous alloys, nanocrystalline alloys, and magnetic powders. It is expected that it will continue to benefit from strong market demand in downstream new energy, data centers, electronics, electricity and other fields. The company's 2022 performance is in line with our previous expectations. We adjusted the company's 2023-2024 revenue and expenses rate expectations and added the 2025 profit forecast. The estimated 2023-2025 revenue is 19.29/23.40/2,731 billion yuan respectively, net profit of the mother is 3.58/431/519 billion yuan respectively, and EPS is 2.98/3.59/4.32 yuan/share respectively, corresponding to the current PE of 25/21/17 times, maintaining the “increase in holdings” rating.
[Risk Reminder]
Downstream market demand fell short of expectations
Production expansion progress is lower than expected
The progress of new business fell short of expectations
Prices of upstream raw materials fluctuated sharply